Upfield - comment
In line with the sunny weather, the company decided to tap the strong primary market and launch a €400 million senior secured notes transaction. Use of proceeds is to redeem a portion of the senior notes. It makes sense for the company as it will lower their overall cost of funding as they are substituting higher-cost debt with lower-cost debt. Depending on where the transaction is priced, the impact on the senior notes should be a net positive as there will be a relative scarcity of the senior notes and if pricing of the senior secured notes is higher than expected, it could lead to compression of the yield on the senior notes and consequently a higher cash price….